Relates to public works undertaken pursuant to project labor agreements, use of the alternative delivery method known as design-build contracts

4 Co-sponsors

• Leroy Comrie
• Martin J. Golden
• Diane J. Savino
• Daniel L. Squadron

BILL NUMBER:S5887

Title of bill

An act to authorize, for certain public works undertaken pursuant to project labor agreements, use of the alternative delivery method known as design-build contracts; and providing for the repeal of such provisions upon expiration thereof

Summary of provisions

This bill would, for any public work undertaken pursuant to a project labor agreement in accordance with section 222 of the labor law, authorize the New York City Department of Design and Construction, New York City Department of Parks and Recreation, New York City Department of Transportation, New York City Health and Hospitals Corporation, New York City Housing Authority, and New York City School Construction Authority to use the alternative delivery method known as design-build contracting, notwithstanding general, special or local laws, rules or regulations to the contrary. Such an authorized entity would select the proposal providing the best value, based upon a request for proposals specifying certain criteria to be used in evaluation. An entity awarding a design-build contract to a contractor offering the best value would further be authorized (but not required) to use a cost-plus not to exceed guaranteed maximum price contract or lump sum contract. Contracts would be required to include a clause requiring the selected design-build contractor to obligate every tier of contractor on the project to comply with the project labor agreement, and project labor agreement compliance monitoring and enforcement provisions. Contracts would be subject to applicable federal, state and local requirements for disadvantaged business enterprises and minority and women-owned business enterprises. The bill would expire five years after its effective date, though public works for which requests for proposals have been issued could continue under the act beyond the expiration date.

Reasons for support

Design-build contracting is a method of project delivery in which the owner executes a single contract with one entity to provide design, engineering and construction services. This method minimizes project risk for the owner, increases the accountability of contractors and streamlines the delivery schedule by overlapping the design and construction phases of a project.

Design-build contracting saves time and money by eliminating time in procuring design services separately from construction services, and by making a single entity responsible for a project, reducing the possibility of contract claims related to design errors or omissions. Additionally, design-build contracting introduces the possibility of innovation during project performance by incentivizing the project provider to think of creative ways to reduce project schedule and delivery methods.

Today, more and more government entities, including the State of New York, have embraced design-build contracting as a preferred method of project delivery. The State was authorized to utilize the design-build method of project delivery from 2011 to 2014, and most notably employed design-build: for the Tappan Zee Bridge replacement project

to achieve an estimated taxpayer savings of $1 billion. Additionally, the Federal Highway Administration, which funds a significant portion of New York City's bridge and road infrastructure capital programs, has indicated that design-build is its preferred method of procurement.

Where the City's Department of Design and Construction, Department of Parks and Recreation, and Department of Transportation and certain other public entities enter into project labor agreements in accordance with section 222 of the Labor Law, this bill would provide the opportunity to use the valuable procurement alternative of design-build contracting in order to provide the public with public works projects of superior quality and on a faster timetable. The City has already identified projects for which estimated savings in the tens of millions of dollars could be achieved.

Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.